The Thai insurance sector faces five main challenges in 2022, according to Dr Suthiphon Thaveechaiyagarn, secretary-general of the Office of Insurance Commission (OIC).
He says that these challenges are:
Economic: The concerns include low interest rates, the contraction of the Thai economy and the increase in household debt that inevitably affect the operating results and purchasing power of the people;
Social: The insurance sector will have to cope with an aging society, and increases in the cost of medical care in Thailand; as well as consumers turning to online channels for transactions resulting in the need to introduce new products and digitalise;
Technology: Insurers need to adapt and adopt technologies such as smart devices or IoT applications in their insurance product offerings. In the next phase, insurance companies will use AI and data analytics to help analyse risks, underwrite insurance. and settle claims;
Environmental: New risks will emerge including pandemics such as COVID-19, global warming, etc. The ESG trend is considered to be very strong;
Legal: The Thai insurance industry is in the process of revising rules, including IFRS 17, which will come into force in 2024. The Personal Data Protection Act, which will take effect in June 2022, will affect the insurance business.
Insurers will also have to monitor the ongoing COVID-19 situation and be ready to deal with new developments related to the pandemic, including rehabilitating companies that face problems.